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Japan's Nissan may potentially end its merger discussions with Honda, as per a report. Nissan's board members are expected to convene soon to decide their next steps. 

According to a report in Reuters that quoted sources, this development casts uncertainty over a merger that could have resulted in the world's third-largest automaker by sales and raises questions about Nissan's ability to navigate its current challenges without external support.

The news of the potential end to merger talks led to a rise in the shares of both companies on Wednesday, with Honda's shares increasing by over 2 per cent and Nissan's by 1.6 per cent, despite a slight decline in Tokyo's Nikkei 225 index.

Honda, Japan's second-largest carmaker, and Nissan, the third-largest, had announced last year that they were in talks to merge, which would have marked a significant shift in an industry facing competition from China's BYD and other electric vehicle newcomers. However, sources indicated that the discussions have been complicated by growing differences between the two parties, as per the report.

Nissan's board is reportedly set to deliberate on ending the merger talks after Honda proposed making Nissan a subsidiary, a move that deviates from their initial discussions. Honda, with a market value nearly five times that of Nissan, is increasingly concerned about Nissan's progress in its recovery plan.

Japan's Asahi Shimbun newspaper had earlier reported that the merger might be called off. Representatives from both companies declined to comment on the status of the merger talks but stated that an announcement would be made in mid-February, as previously indicated.

Nissan has faced greater challenges than some other automakers in the transition to electric vehicles, having not fully recovered from the crises following the arrest and removal of former Chairman Carlos Ghosn in 2018. The merger discussions have also coincided with potential tariff disruptions from the United States. Analysts suggest that tariffs against Mexico could impact Nissan more severely than Honda or Toyota.

Nissan's long-term alliance partner, Renault, had expressed openness to the merger with Honda. The French automaker holds a 36 per cent stake in Nissan, including 18.7 per cent through a French trust.

Continuing its focus on rapid infrastructure development, the government this time has aided its growth formula with major tax relief for the low-to-mid income individuals. As Finance Minister Nirmala Sitharaman lowered the income tax burden on individuals earning up to Rs 12 lakh per annum, coupled with boosts for the agricultural sector, corporate India cheered the union budget for FY2026.

According to Anish Shah, Group CEO & MD at Mahindra Group, the theme of ‘Make in India for the world’ remains a key focus in this budget, with efforts to reduce India's manufacturing costs poised to significantly enhance the country's global competitiveness. In addition to providing an immediate stimulus for demand and growth, the budget emphasises on long-term growth through substantial infrastructure investments and a strong focus on innovation.

“We commend the 2025 Union Budget for its continued support of robust consumption growth through changes in the tax structure, effectively placing more disposable income in the hands of the Indian consumer. This will encourage private sector capex to move in a positive direction,” says Shah.

Mohit Malhotra, CEO, Dabur India feels that tax reliefs offered in the budget will help boost the economy by increasing consumption. “Union Budget 2025-26 marks a pivotal step towards enhancing the financial well-being and quality of life for millions of middle-class families. The substantial tax relief measures, particularly making income up to ₹12 lakh tax-free, will provide essential financial respite to middle-class families, increasing their disposable income, encouraging spending, and promoting overall economic growth. This focus on the middle class addresses a long-standing demand and is a positive step towards a more inclusive and robust economy. I am optimistic that this move will help stem the slowdown in urban consumption and bring it back on the growth track,” says Malhotra.

According to him, the budget's emphasis on the agricultural sector, with enhanced support for farmers through increased Kisan Credit Card limits and targeted financial incentives, is commendable. These measures will not only strengthen the agricultural backbone of our country but also ensure food security and sustainable growth in the sector.

“The Union Budget 2025-26 is a bold and forward-looking plan that places the middle class at its core while ensuring inclusive and sustainable growth across all sectors. For middle-class families, strategic focus on targeted tax relief and enhanced social security measures, will uplift household sentiments, boost disposable income and drive consumption. This will provide much-needed financial stability to the masses,” says Saugata Gupta, MD & CEO of FMCG major Marico.

According to Gupta, the allocation of Rs 1.71 lakh crore to agriculture and allied activities, coupled with initiatives like the National Mission for Edible Oilseeds, Aatmanirbharta in Pulses, and the Prime Minister Dhan-Dhaanya Krishi Yojana, will drive agricultural productivity, stabilize rural economies, and ensure farmers have access to essential resources.

"This is a well-structured and progressive budget, aligned with the Government’s vision of a Viksit Bharat. It maintains a strong focus on inclusive growth, covering key sectors such as agriculture, farming, women’s empowerment, and manufacturing. The continued emphasis on capital expenditure is commendable,” says Harsha Vardhan Agarwal Vice Chairman & MD, Emami Ltd, adding that a major highlight of this budget is the significant announcement on personal income tax. “By putting more money in the hands of consumers, this step is expected to boost consumption and drive an increase in discretionary spending, ultimately strengthening overall economic momentum."

Sanjay Dutt, CEO and MD, TATA Realty and Infrastructure feels that the budget underscores India’s forward-looking vision for sustainable growth, urban transformation, and infrastructural excellence. 

“We commend the government’s comprehensive approach with its emphasis on increasing purchasing power by increasing the tax limit, strengthening urban infrastructure, governance, and land-use planning, with housing continuing to be a pillar of national growth. Additionally, the extension of tax benefits for self-occupied properties and interest subsidies further empowers homeowners, making housing more accessible and financially feasible,” says Dutt.

As corporate leaders push for longer workweeks, the Economic Survey 2024-25 has issued a stark warning: excessive work hours can take a serious toll on mental health.

Citing global studies, the survey highlighted that working over 60 hours a week can lead to significant health risks, with those clocking 12-hour days at their desks showing “distressed” levels of mental well-being. The findings arrive amid a heated debate over the 70-90-hour workweek proposal, which has divided India’s business community.

The Economic Survey referenced a study by the Sapien Labs Centre for Human Brain and Mind, reinforcing that long hours at a desk harm mental health. “Individuals who spend 12 or more hours at a desk have distressed/struggling levels of mental well-being, with a mental well-being score approximately 100 points lower than those who spend less than or equal to two hours at a desk,” the survey noted.

Beyond mental health, workplace culture and lifestyle choices were also found to impact productivity. The survey indicated that stronger workplace relationships and a better sense of purpose at work could reduce workday losses by 2-3 days per month. Conversely, poor management relationships and low workplace pride were linked to increased absenteeism.

Still, the survey acknowledged that productivity is influenced by multiple factors, cautioning that even in organizations with strong managerial relationships, an average of five workdays per month are lost. Citing World Health Organization (WHO) data, it also highlighted that depression and anxiety result in a global loss of 12 billion workdays annually, amounting to an economic hit of $1 trillion. “In rupee terms, this translates to about ₹7,000 per day,” it added.

The survey’s findings come in the wake of remarks by industry leaders advocating for extended workweeks. Larsen & Toubro Chairman S N Subrahmanyan recently suggested a 90-hour workweek, arguing that employees should work even on Sundays rather than “sit at home.” His comments echoed similar views from Infosys co-founder Narayana Murthy, who proposed a 70-hour workweek, and Adani Group chairman Gautam Adani, who joked that spending too much time at home could lead to marital discord.

However, calls for grueling schedules have met resistance from within the corporate world. RPG Group Chairman Harsh Goenka warned that excessive work hours lead to burnout, not success. Mahindra Group Chairman Anand Mahindra also pushed back, stating that productivity should be prioritized over work hours. ITC Ltd Chairman Sanjiv Puri further emphasized the importance of empowering employees rather than measuring their worth by time spent working.

The debate is not unique to India. In China, the infamous ‘996 culture’—where employees work from 9 am to 9 pm, six days a week—has faced increasing scrutiny. The Economic Survey concluded that if India hopes to achieve its economic goals, it must address lifestyle choices from an early stage. Toxic work cultures and excessive hours, it warned, could ultimately hinder the country’s economic growth.